Marketing Financial Services Essay Example | Topics and Well Written Essays - 2500 words - 2

Marketing Financial Services - Essay Example Hence, they started to follow and implement free trade policies that encourage multinational companies to enter into the global markets. Ultimately, overall market became competitive and matured. Monopoly market structure has become very rare and oligopoly becomes prominent. Hope and Maeleng have defined free trade policy as â€Å"competition-enhancing device† (Hope and Maeleng, 1998, p.52). The international and domestic countries started to compete with each other on price, better service, customer satisfaction etc for achieving greater market share. In this respect, to gain competitive advantage in market, the post modern organisations are using latest management tools, theories and models developed by many experts, critics and scholars. Financial services industry consist a number of financial services sectors like banking sectors, insurance, security market, factoring, credit ratings etc. With increased activities of trade and business and intensified competition, the imp ortance of these financial services sectors has grown significantly. This paper will attempt to present and SWOT analysis of American International Group (AIG) which is one the most popular financial service organisation. In order to indentify its major internal strengths and weaknesses, external opportunities and threats, this paper will analyse important areas of this organisation like its customer relationship managements, marketing tools used the company, major issues and its mechanism of control system. Finally, the overall findings of this paper will be summed up in the conclusion. Brief Overview of American International Group (AIG) American International Group Inc. (AIG) is one of the popular insurance services providers in US and in global market. Primarily, it is a New York-based company and it is considered to be one of the most prominent market leaders in global insurance sector. AIG is a multinational company and offers its insurance services in more than 130 countries in the world. The company has acquired a large base of customers and its consumers primarily consist of institutional, commercial and individual clients. The major market share of the company comes from its domestic market i.e. from United States. In this market, the AIG offer retirement services and life insurance. With better performance, it has acquired an upper hand position in U.S. insurance sector. Along with the domestic market, AIG’s stocks are also listed in Tokyo and Ireland Stock exchange (American International Group, Inc-a, 2011). While tracing the history of AIG, its primary origin is found in Shanghai, China during 1919. However, later during the 1940s due to political issues, the company withdrew from the Chinese market. â€Å"AIG abandoned China completely in 1949, as the Communist People’s Liberation Army, led by Mao Zeding, advanced on Shanghai† ( H.W. Wilson Company, 2000, p.247). In U.S., the AIG had been formed by consolidating three compan ies and its multiple affiliates. These leading three companies are New Hampshire Insurance Company, American Home Assurance Company and National Union Fire Insurance Company. Since its inception, AIG has undergone through many significant occurrences like mergers and acquisitions. SunAmerica Inc was merged with AIG on January 01, 1999. In November 2000, the company